Venture Capital Investments Achieve Record Levels in 2000, Torrid Pace Relaxed in Forth Quarter Thomson Financial Securities Data 22 Thomson Place Boston, MA 02210 www.ventureeconomics.com National Venture Capital Association 1655 N. Ft. Myer Dr., Ste. 850 Arlington, VA 22209 www.nvca.org CONTACTS: Monica McGlinchey (TFSD) (617) 856-1355 Jeanne Lazarus Metzger (NVCA) (703) 524-2549 ext. 16 or George Zouvelos, The Weiser Group 212-448-8067 Washington D.C., January 29, 2001 - Venture investments in emerging enterprises reached $103.0 billion in 2000, a record level and 73.5% more than last year’s total of $59.4 billion, according to statistics released today by The National Venture Capital Association and Venture Economics. The number of companies who benefited from venture capital financing also hit a record of 5,380, representing a 36% increase over the 3,967 companies funded in 1999. As anticipated, venture capital investment slowed in the 4th quarter of 2000 as the industry stepped back from a torrid pace. “The venture industry achieved record levels in 2000, but after five years of exceptional and unprecedented growth, evidenced by a ten fold increase in investments made, the industry is catching its breath,” stated Mark G. Heesen, president of the National Venture Capital Association. “That said, venture capitalists are still raising new money, many have sufficient capital in their coffers and deal flow remains at healthy levels.” Venture capitalists deployed $19.6 billion in Q4 2000, compared to $28.3 billion in Q3 2000, representing a 30.7% decrease in investment activity. This decrease in investment can be attributed to several factors, including venture capitalists spending more time with current portfolio companies, turbulence in the public markets and a cooling on e-commerce related IPOs. Industry Although many in the business world have declared Internet investing dead, data shows that venture capitalists believe that the Internet will continue to have a dramatic impact on how people live and work in the future. In fact, Internet Specific companies continued to attract over 40% of all venture investment in the 4th quarter of 2000. The venture community’s focus is moving toward new business models and technologies that will help propel Internet development forward. Communications, Computer Software & Services, and Semiconductors & Other Electronics all saw slight increases in terms of percentage of total dollars invested, when comparing Q4 ’00 to Q3 ‘00 levels. Semiconductors & Other Electronics experienced the largest growth in terms of dollars invested, 159%, when comparing full year 2000 to full year 1999. Region Northern California remained the region that attracted the most venture capital, capturing approximately 32.5% of all venture capital investment in 2000 and in 1999. The Greater New York area was the second largest region, capturing 11.8% in 2000, and New England came in third, capturing 10.2% in 2000. Interestingly, the growth rate of venture capital was greater in New England, 100%, than it was in Northern California and New York when comparing 2000 investment levels to 1999 investment levels. The Rocky Mountain region and the Great Plains region saw the greatest growth rates of 135.7% and 107.4%, respectively. Stage One of the most interesting trends centers on the point of a company’s lifecycle when venture capital is being deployed. The statistics show that the majority of resources, both time and capital, are being directed to existing portfolio companies. Expansion stage companies continue to attract the most venture financing, attracting 52% in Q4 2000 and 54% for the full year 2000. In the 4th quarter 23.4% of companies that received funding were later stage companies, compared to 20% for the full year. Consequently, first round financings accounted for 25.5% of Q4 investments, representing a slowdown in first-time financings. However, early stage companies continue to attract a healthy percentage of dollars invested, approximately 22% in Q4 and 23% for the full year 2000. Commenting on this trend, Heesen remarked, “The fact that the venture capital industry continues to channel funds to existing companies conveys a confidence in the longer-term horizon. There is clearly a commitment there to grow winners while at the same time feed a pipeline of new opportunities.”
US Venture Capital Investments 2010 National Venture Capital Association
Venture Capital <ul><li>Price Waterhouse Moneytree </li></ul><ul><ul><li>Venture Capital by Industry </li></ul></ul><ul><ul><li>Venture Capital by Region </li></ul></ul><ul><ul><li>Venture Capital by Stage </li></ul></ul>
Alventive Design-to-order products through its online community. Ariba Business-to-business electronic commerce solutions. Ticker: ARBA BridgeSpan Settlement services for the real estate industry. Collab.net Open source softwaremarketplace. Decision Point Systems Technology based pre-employment services. E-Dr. Network E-commerce site serving eyecare professionals. EmployeeSavings.com Leading provider of Internet-based work/life solutions. eShop* Electronic commerce tools (acquired by Microsoft) Ticker: MSFT Impresse B2B e-commerce network for commercial printing. People Support Provider of comprehensive Internet customer care services and technologies. TradeOut.com A global Internet marketplace for business surplus. Vcommerce.com The leading provider of outsourced commerce on the Internet. 1999
Draper Fisher Jurvetson <ul><li>Founder Tim Draper </li></ul><ul><li>Portfolio Companies </li></ul><ul><li>Owns 28.1% of Baidu.com </li></ul><ul><li>Skype Website </li></ul>
Kleiner Perkins <ul><li>Maltese Falcon – 289 feet, 88 metres, $130 MM </li></ul>Thomas James Perkins (born 1932) American businessman, capitalist, and was one of the founders of leading venture capital firm Kleiner, Perkins, Caufield & Byers.
<ul><li>Communication services NEC </li></ul><ul><li>7372 Prepackaged Software </li></ul><ul><li>7375 Information Retrieval Services </li></ul><ul><li>7389 Business Services NEC </li></ul><ul><li>7379 Computer Related Services NEC </li></ul>Internet Related Industries - Companies that provide Internet navigation services and reference guide information for World Wide Web and that publish, provide, or present proprietary, advertising, and/or third party content. SIC Codes Related To This Industry